Market Analysis for Dec 1st, 2004

The E-mini December S&P just spurted to a new intraday high at 1189.25, in its third attempt to rocket through important resistance between 1190 and 1192 since Nov 17. This is a critical test for the E-SPZ. If it succeeds in hurdling and sustaining above 1192, my work will point to 1220 as the next target zone. Conversely, if the E-SPZ fails to successfully hurdle 1190-92, then we will have 3 peaks since mid-November, which create a significant resistance plateau and the makings of a very meaningful near-term top on the Aug-Dec upmove from 1060.50. It is the anticipation of an impending Triple-Top formation in and around the 1190-92 area that prevents us from establishing long positions and keeps us short at this time.

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